If the 2nd generation iPhone has half the capabilities people on here say it will, the starting price will be eleventy-billion dollars.
That's already a couple of big upgrades for no extra cost. You start adding in GPS and that's got to be a lot of dough spent on a single upgrade for something so relatively cheap.
Therefore, I'm still skeptical about GPS coming on 2nd generation phone.
Unless, they run both iPhone, the 1st Gen and 2nd Gen, the 1st a little less than now, the 2nd a bit more